Can You Save Money with the New AT&amp;T Tiered Pricing Plans?

AT&T Wireless announced this week that they will soon stop offering unlimited data plans to new smart phone customers. (Existing customers can stick with their existing $30 per month unlimited data plan or switch.) There are two plans on offer: The first provides 200 MB of data per month at a cost of $15, while the second tier provides 2 GB of data for $25 per month. (If you're not familiar with this change, please read my news article, AT&T Wireless Kills Unlimited Data Plan.)

The question here, of course, is whether it's possible to save money on the new plan. I'm an iPhone user currently, and thus an AT&T customer, so I was personally curious about this as well. And say what you will about AT&T--I certainly have, their network is terrible, overall--but they have fantastic customer service, including a great support web site. And using this site, you can find out what your data usage is like over time. (Here's how: Logon. Under "My Current Usage," click View Past Data Usage.)

Here's my own data usage since the beginning of 2010.

As you can see, I exceed the lower-tier, 200 MB plan every single month. But since the next 200 MB would cost an additional $15 per month, I'd end up paying the same $30 monthly fee every month if I opted for that.

The 2 GB plan would work, of course, and I'll probably do that. This will save just $5 per month, however, or $60 per year. Better than nothing, I guess. But it makes me wonder why there isn't a third tier, between the existing two, that would cost $20 per month and, perhaps, provide 1 GB of data per month. If AT&T offered this, I could save $120 a year. Wouldn't that be something?

I've often lamented the lack of tiered data pricing and knew I'd be able to save money if such a thing were offered. I already use the lowest-possible voice and text plans to save money as well. So the AT&T change is somewhat beneficial for me. It could be even better for you. Be sure to take a look if you're an AT&T customer. The availability of your data usage over time will help you make the right decision.

My usage is well under 200M (particularly since firmware improvements allowed WiFi to remain on around the house without slaying the battery).

I will certainly opt down to the 200M tier (AFTER I make very sure that such a change doesn't extend the contract--as a similar change would have when I was with Verizon [old news]). I've become paranoid about making changes that might extend cell phone contracts. Particularly now, when I expire in November, just in time for some interesting choices.

(OK. My contract expires in November. I hope not to.)

(And my AT&T coverage is fine everywhere I need it, so this odd talk about Verizon iPhones is of no interest to me, even though I suspect that they've improved coverage since I left them--it was nearly useless then in three places I often am.)

I took a look, and between my wife and I we use less than 200MB combined! So we'll both be dropping to the 200MB plans and saving $30 a month. About once a year we might exceed it when we travel on vacation, but otherwise we use wifi most of the time. That really cuts down the mobile data usage.

For the 98% of users who use less than 2 GB a month, AT&T is $5 a month cheaper than Verizon, saving $60 a year. With tethering, AT&T is $15 a month cheaper than Verizon, saving $180 a year.

Ideally, AT&T should also have a limit of 5 GB a month, like Verizon. This makes it easier to use video conferencing on the new iPhones. After all, AT&T in the 1970s did envision someday having video conferencing on phones. The 5GB limit would still be a good cutoff point for heavy data users.

Paul, you're spot-on about AT&T's customer service. Are you using AT&T's "mywireless" app? Great way to track your billing and usage without going out to the support website.

The biggest problem I had in switching to AT&T was getting used to their phenomenal customer service after years of suffering with the company I refer to as "verizscum". I've never had any real problems with their network to speak of (although I find it amusing that I can't get a signal 500 feet from their local mall store), and the pricing (while not great) isn't really any worse than anyone else in the industry.

I was a late adopter of the iPhone, but I'm damn glad I got it. Best piece of electronic equipment I've ever owned, full stop. I briefly considered an Android phone just because I was reluctant to leave "verizscum", but no worries...best move I ever made. At least I didn't get stuck with a piece of crap like this: www.zdnet.com/.../2163

Yeah, the iPhone app (MyWireless) is key .. especially when you're overseas and working on a limited data package. Of course, that's now true in the US too, so this app will get even more use.
They really do a good job. And the times I've had to call or go into the store they've been great. In sharp contrast to the network, but it almost makes the whole thing worthwhile. (I'll try to remember this when my iPhone cuts me off during a call to my wife on a business trip for the upteenth time, and without warning.)

I'm sure Verizon will match these plans very shortly. They always do. With the EVO coming out tomorrow, I'm going to try out Sprint and see how it works out. I suspect it will, and I will save money and get a lot more for my money, like unlimited texting and Sprint TV. And with the 30 day no risk trial, there is nothing to lose.

Although, the upcoming Droid Shadow for Verizon does look quite compelling. I had the Incredible for a month, and I liked it a lot. But with all of these newer Android devices coming out, I've decided to wait until all of the cards fall and determine whether it is the EVO, Incredible, or Shadow for me.

John, I believe that the changes to the data plan will not extend your contract. I also believe that they will allow you to switch back and forth at will based on usage.

Charging $20 a month extra for tethering is pretty hard to swallow considering they'll only be offering capped data plans.

AT&T senior VP of data and voice products Mark Collins:

"That capability is enabling something you can’t do today. You can use one device and get multiple connections so it’s more useful to you. You’re going to use more data so the price is based on the value that will be delivered."

Uh, no. You'll pay for X amount of data, and you'll pay more if you exceed X. Whether you tether or not (sounds like a Dr. Suess title).

Pure greed, It's a "because they can" charge. Too bad too, because AT&T could have really differentiated themselves from the competition be including tethering at no additional fee, now that unlimited plans are dead.

I have to dissent on this. I think this is a temporary fix to a long term problem. AT&T's network is STILL an absolute joke. Even in Dallas with HSPA 7.2 rolled out, I still have friends with iPhones who still drop 3G service. I have friends with non-iPhone smartphones who still have 2 bars & dropped calls a lot.

While for some people tiered makes sense, in the long term it's not going to work. People are going to do more streaming, download more content, & more browsing with these devices. What happens when we have screens with 720p? Not just the phones but the tablets!

This will happen much sooner than later. What happens when we have video calls happening? In the U.S., there is no excuse for not having enough bandwidth. Only AT&T seems to have a bandwidth issue.

Instead of screwing over their customers, how about AT&T fix their network? In the longterm, that will have the strongest longterm impact for AT&T's customers. The longer AT&T plays the timeclock pricing game, you know that Verizon, Sprint, & T-Mobile will jump all over this.

If I was Verizon, I can see the new iDon't commercial with some spin.

iDon't have great data plans.

iDon't have enough bandwidth.

iDon't have carrier choice.

iDon't have hardware choice.

iDon't stay connected to 3G networks.

Whatever iDon't, DROID DOES!

And they'd be right for the most part. Dan Hesse will appear in a new Sprint commercial, touting everything plans, unlimited data, & giving what the people want.

T-Mobile will just find another celebrity & sell their new phone.

I just think this an ass backward's approach to shore up AT&T's long term problem. The long term problem of an old & aging infrastructure, insufficient towers, & not enough money allocated to fixing the network. Instead of fixing the problem, they are overpaying their CEO & chief officers instead of getting the network up to speed.

(Australian based so we have caps on everything) the application tracks my calls, 3G, my home internet, local traffic etc - fantastic - I never have to visit the individual websites, and all my communications information is in my location - down to the cent.

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